=+LG 6 P8–30 Integrative: Risk, return, and CAPM Wolff Enterprises must consider several investment projects, A through E, using the capital asset pricing model (CAPM) and its graphical representation, the security market line (SML). Relevant information is presented in the following table.

Item Rate of return Beta, B Risk-free asset 9% 0.00 Market portfolio 14 1.00 Project A — 1.50 Project B — 0.75 Project C — 2.00 Project D — 0.00 Project E — -0.50